Council ultimatum 'unhelpful', says NZ Bus

The deadlock between drivers and their employer NZ has taken 700 buses off the road. Photo / Sarah Ivey

NZ Bus says hard hitting comments by Auckland Regional Council chairman Mike Lee are unhelpful and may even have worsened the current dispute with its drivers.

Mr Lee's ultimatum to the bus company at the centre of the industrial dispute was straightforward - either fix it up or lose your contract.

"Auckland will not be held to ransom. If you can't deliver the services that the people of Auckland rely on, then we will have to find someone else who can," he said.

NZ Bus general manager of operations Zane Fulljames said Mr Lee's comments were "not helpful".

"In fact, unwittingly, his comments may have exacerbated the issue. However we will not be entering into a slanging match with him via the media," Mr Fulljames said.

He re-iterated that NZ Bus would continue the lock-out of its drivers until they remove their work-to-rule notice.

Despite meetings over the weekend, it appears NZ Bus and the unions representing drivers have not made any meaningful progress.

Mr Lee say NZ Bus have breached its contract with the council to provide bus services around Auckland and the contract can be terminated for the company's failure to carry out their side of the agreement.

"The Auckland travelling public have run out of any patience or sympathy for this on-going nonsense," said Mr Lee.

"Terminating NZ Bus contracts would be a drastic step. However, it is clear that the company is not responding to other normal commercial pressure, nor in my view does it take seriously its service obligations to the public.

"Perhaps the threat of NZ Bus's entire Auckland business being terminated will sharpen the minds of the negotiators and deliver the break through that is required," Mr Lee said.

This morning traffic was flowing as normal while trains were packed to capacity as the bus lock-out coincides with students returning from school holidays.

More than 9000 Auckland children started their first day back at school today without buses to get them to classes.

New Zealand Transport Agency acting Auckland State Highways manager Sumi Eratne said the traffic on Auckland's motorway was typical for a first day of term.

He said traffic volumes on the northern motorway were a little higher than normal but with the northern busway operating as normal, congestion was only slightly higher than normal.

Auckland Regional Transport Authority spokeswoman Sharon Hunter said the western train lines were 50 per cent busier than usual. She said the figures are still coming in but train staff reported huge increases in passenger numbers.

She said some of those on the Western line had to wait for the next train because of the passenger numbers.

Ms Hunter said it was only about a five minute wait because the trains were coming one after the other.

She said the Southern and Eastern lines also reported a 40 per cent increase.

Ms Hunter said the skeleton bus services have also been "packed to capacity". She said the Airport Bus has been picking people up who have been waiting at stops that they don't usually stop at.

Talks between NZ Bus and unions representing its drivers continued throughout the weekend, but ended last night without agreement.

- with Newstalk ZB